EURUSD Forecast

The EURUSD bullish momentum was paused yesterday on broad Dollar strength, still unable to make a clear break above 1.4000.  I think there are two things worth noting here. First, price is still in a strong bullish phase. Second, the fact that 1.4000 can not be clearly broken so far could create a bullish exhaustion and potential downside pullback testing 1.3860/00 key support area especially if price able to make a clear break below 1.3920. However, any downside movement at this phase should be considered as a normal correction and only a clear break below 1.3860/00 would continue the downside corrective move testing 1.3700. On the upside, another move back above 1.4000 would change the intraday bias to bullish again and keep the bullish continuation scenario targeting 1.4281 this week remains strong.

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